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I think the nook touch would be better for you as you would prefer ePub.
I've found myself mostly using the touch screen to change pages on mine, so the buttons don't really come into play for me.
Both the kindle and the nook have pretty much the same screen, but the nook will do a full screen flash less often than the kindle. The flash is distracting for some people, so it's something you should try out before making a final decision on how important it is to you.
As far as changing formats, you would need the drm removal tools (which we can't link here). I've personally found the epub tools (both B&N and generic) easier to deal with than the kindle tools. Either way, there are also more stores that sell ePub than kindle compatible formats, though in the last year that has evened up somewhat.
As you can tell, I prefer the nook to the kindle, but if you can find a place or someone you know that has good quality demo units, that would be the place to try it out. Barnes & Noble seems to keep theirs in good condition and has someone nearby to answer any questions. The best kindle demo units I've seen were at a Microsoft store... however, there aren't many of those about.
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